Incredible Rush to Exceptional India

Powered by a rush of foreign investment, Indian stock prices surged to a new high last week. Posting double-digit returns year-to-date, Indian equities have outperformed stocks in the other BRIC economies, as well as the U.S. Also – while declining globally – foreign direct investment into India spurted to an eight-year high in 2016, exceeding India’s current account deficit for the first time since economic liberalization a quarter-century ago.

Back in September, in the face of a less hopeful consensus about India’s prospects, ECRI presented a contrarian report titled “Exceptional India.” The report noted that, “bucking the [global] trend … Indian export growth prospects continue to improve,” according to ECRI’s Indian Leading Exports Index.............